Rates and tax will take steam out of property market, says RBA
The Reserve Bank of Australia (RBA) has indicated that higher interest rates and tax changes will likely cool the housing market. Chief economist Sarah Hunter warned that if inflation continues to rise, the bank may need to implement measures similar to those during the recession of the early 1990s. Recent government budget proposals aim to restrict negative gearing and overhaul capital gains tax, which supporters believe will alleviate some pressure on house prices.
- ▪The RBA has increased interest rates at its last three meetings to combat inflation, which is currently at 4.6%.
- ▪Housing price growth has slowed, with declines noted in major cities like Melbourne and Sydney.
- ▪The federal budget includes plans to restrict negative gearing to new builds and change capital gains tax.
Opening excerpt (first ~120 words) tap to expand
{"@context":"https://schema.org","@type":"NewsArticle","dateModified":"2026-05-19T07:44:18Z","datePublished":"2026-05-19T07:44:18Z","description":"Higher interest rates and changes to taxes around housing are likely to take some heat out of the housing market.","headline":"Rates and tax will take steam out of property market, says RBA","keywords":"Inflation, Petrol prices","author":[{"@type":"Person","name":"Shane Wright","jobTitle":"Senior economics correspondent","url":"/by/shane-wright-h170pw"},{"@type":"Person","name":"Mike Foley","jobTitle":"Climate and Energy…
Excerpt limited to ~120 words for fair-use compliance. The full article is at The Sydney Morning Herald.